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Delta40 has raised $20 million to double down on what it believes Africa needs more of right now: early capital paired with real company building.
The venture firm, backed by billionaire George Soros through the Soros Economic Development Fund, pulled together the funding from 54 investors across 13 countries. The Rockefeller Foundation also participated, alongside development finance institutions, foundations, family offices and more than 20 investors from the United States.
Founder and chief executive Lyndsay Holley Handler said the mix matters. More than half of the $20 million is commercial capital, meaning investors expect financial returns, not just social impact.
Delta40 focuses on sectors it sees as central to economic growth across the continent: energy and mobility, agriculture and food systems, and financial services tied to data and artificial intelligence.
“We see these sectors as the most important spaces for driving economic growth,” Handler said.
Established in 2021, the US-based fund operates as both an investor and a venture studio. It writes initial cheques of between $100,000 and $500,000 at the idea and seed stages, with room to invest more as companies grow. But the model goes beyond funding.
Through its studio operations in Kenya and Nigeria, Delta40 works closely with founders to test ideas, build minimum viable products, hire early teams and shape commercial strategy before spinning projects out into standalone businesses. The firm also supports startups on fundraising, governance, go-to-market planning and exit preparation, areas where young companies often struggle.
Since launching, Delta40 says it has backed 16 companies, including logistics startup Lori and solar fintech platform SunFi.
The timing of the raise comes as Africa’s startup ecosystem adjusts to tighter capital markets. Investors are asking tougher questions about profitability and long-term sustainability, pushing founders to move beyond early traction and prove durable business models.
There are signs of resilience. Funding for African startups climbed by a quarter last year to more than $3.6 billion, with over 635 deals announced, according to data from Briter’s annual Africa Investment Report.
Handler believes growing US participation in the fund could help channel more international capital into the continent.
“Africa is home to some of the fastest-growing economies and the most youthful population in the world,” she said, adding that deeper global investor engagement will be key to sustaining that momentum.
Delta40’s bet is straightforward: pair early money with hands-on execution, focus on sectors with real demand, and build companies that can stand on their own. In a market where easy funding is no longer guaranteed, that approach is drawing serious attention.
